...NEW BALANCE CASE STUDY If you have a company and do business internationally, in today’s global world you have to compete with your rivals and be strong in the market. Reducing your cost is one of the effective ways to be competitive and strong. That’s why majority of companies seek low cost producer, labor etc. As we know China is the best example with its low cost labor, outsource etc. So China is very attractive for the companies doing international business. Most of them outsource more of their manufacturing to China to maintain a cost advantage. It looks very logical and easy to benefit from cost advantage by this way but it not as easy as we thought. As we can see our case, New Balance which is one of important shoe companies chose this way and faced really annoying problem for its brand: Counterfeit goods. 1) New Balance faced with these issues: • How to protect its intellectual properties when setting up manufacturing overseas. • How to stop the Chinese manufacturing unit from producing the “fashion” shoe which is sold at very low price and diluting the brand. 2) Important factors that are important in understanding this decision situation: • Since China is selling the low-price “fashion” shoes that are indistinguishable from the originals, brand value of New Balance can be damaged. • Selling low-price shoes can lead New Balance to gain reputation of selling low-quality shoes. 3) The alternatives are: • Getting into the overseas legal system...
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...Case Study #1: New Balance Introduction New Balance is a global athletic shoe and apparel company, founded in Boston in 1906 by a waiter named William J. Riley, who made arch supports for people who walked a lot (Veleva, 2010, p. 2). He began designing running shoes for local organizations and in the 1940s, New Balance was making custom shoes for many different sports, including running, basketball, baseball, tennis, and boxing and in the 1960s, started manufacturing shoes in varying widths in larger quantities (Veleva, 2010, p. 2). In 1972, the company was sold to James and Anne Davis for $100,000, who have owned New Balance ever since and in 2009, with James as chairman, and Anne as vice-chairman and executive vice-president, administration (Veleva, 2010, p. 2). James Davis saw great growth potential for the company after trying out the shoes himself (Veleva, 2010, p. 2). New Balance experienced enormous growth and its sales increased more than 600% between 1991 and 2008, achieving $1.61 billion in that year (Veleva, 2010, p. 3). The owners, James and Anne Davis had always operated New Balance in a socially responsible way, but did not have a formal CSR department or strategy for the business and did not advertise their CSR activities to the public (Veleva, 2010, p. 5). In 2006, James and Anne Davis formally integrated CSR into New Balance’s mission and values (Veleva, 2010, p. 5). Katherine Shepard, the company’s communications manager was promoted to the role of social...
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...New Balance Athletic Shoe, Inc. is an American athletic footwear manufacturer based in Boston, Massachusetts. The company was founded in 1906 as the "New Balance Arch Support Company" by William J. Riley and is now one of the world's top athletic footwear manufacturers. William Riley started out developing arch supports designed to improve shoe fit. His first product, a flexible arch. The company now boasts of manufacturing various athletic shoes and apparel. New balance is the second largest manufacture of athletic shoes in the United States and it is currently the number four largest manufacture of athletic shoes in the world. The company has over 4000 employees worldwide. The company was the only global footwear manufacturer with production in the United States. Sales for its products were estimated to be over $2.0 billion. The company prides itself as the only footwear manufactures to with production factories on US soil. The current CEO is Robert De Martini. New-Balance athletic company still remains a privately owned company. The company owns five factories in the Unites states. Two in Massachusetts and three in Maine. What makes New-Balance company rise above other companies in terms of CSR, is the current owners James and Anne Davis; continued commitment being socially responsible and “giving back” to stakeholders. Under The stewardship of the Davies, New-Balance Company had always strongly braced corporate philanthropy, encouraged employee volunteering and ensured compliance...
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...SNHU New Balance Case Study Ed Williams Introduction New Balance Athletic Shoe, Inc. (New Balance) is an organization that offers and makes athletic shoes, attire and extras for men, ladies and youngsters. It is the fourth biggest shoe maker on the planet. The organization was established by William Riley and was formerly known as New Balance Arch Company. In 1972, James S. Davis acquired the organization and renamed it The New Balance Athletic Shoe Company. The New Balance Company is a secretly held organization central command is situated in Brighton, Massachusetts and the organization utilizes 4,100 individuals all through the world. New Balance items are sold universally through their working divisions in the United Kingdom, Europe, Asia and Canada. James S. Davis is current executive and Robot DeMartini is the present President and Chief Executive Officer (CEO) of New Balance. (Business Line. 2014) In this New Balance Case study, I will examine the organization's CSR system by utilizing the Corporate Citizenship administration structure (CCMF), examination of the qualities and shortcomings of some procedures and how the New Balance Company is executing their Corporate Social Responsibility (CSR) method. Qualities and Weaknesses So, as to comprehend the organization's corporate citizenship, New Balance Company uses corporate citizenship administration structure (CCMF) to comprehend the organization's qualities and shortcomings. It incorporates four interrelated...
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...Q: What are the key elements of the New Balance’s operations strategy? Key elements of Operations strategy are * Customization/Personalization - A shoe with multiple width size option to support superior performance and comfort * Focus on manufacturing and operations and not on marketing * Marketing spend much lower than competitors * Product focused strategy with campaigns like “Endorsed by No One Campaign “ * Special focus on Product design * Incremental Design for existing product to suit evolving customer needs * New Design – Absorb EX and Zip oriented towards on younger customer base * Shoe Manufacturing(25%) in United States to provide customization and speed to market * Sales and Distribution * Distribution through small retailers. Building strong relationship with retailers * Leveraging independent sales force. Effective relationship management leading to long tenured Sales force. * More Sales and low inventory/inventory holding cost at retailers site * Shipment delivered to retailer day after the order placed. This way retailer has to hold less inventory and hence less inventory holding cost. Also improves speed to service the customer. * All the risk with New Balance company * Supply Chain and Manufacturing * Placing order weekly vs monthly and placing small orders to decrease lead time from 12 weeks to 9 weeks. * Building stronger relationship with suppliers...
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...Professor Crocker H. Liu | Financial Management, Spring 2000 Tire City Case Frequently Asked Questions | | Note: What I'm trying to make you do is THINK! To read things carefully. To make judgements for yourself without your parents/teachers telling you what to do. This is an INDIVIDUAL project and therefore, anyone who cheats will be given an F in the course. Marine Corp. slogan: The weak quit when they experience pain, the strong quit only when the mission is accomplished. Hawaiian: ho'oikaika Collaborating with Others: * I would like to know if we can work on the case with another student to make things a bit easier and more productive, but still hand in separate copies. If you wish to discuss the case with another student that's fine. However, if you are "borrowing his spreadsheet" and modifying it slightly and/or "lifting his analysis" but putting it in your own words the answer is NO!! It's always easier to work in a group but there is too much free ridership. I HATE remoras (a tiny fish that gets a free ride and free eats but sticking to the belly of a shark). Also, you already know the grade you'll be getting if your report and spreadsheet resemble another student's. I don't make idle threats. In Class Example: * I was wondering whether you were going to post a completed version of the Financial Planning Spreadsheet on the net. As far as posting a completed version of the Financial Planning Spreadsheet on the net, it is already in your Financial...
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...[pic] Work-life balance, employee engagement and discretionary effort A review of the evidence March 2007 Literature review by Dr Mervyl McPherson of the EEO Trust. Extracts from this publication may be copied and quoted with acknowledgement. ISBN No: 0-9582233-4-3 Equal Employment Opportunities Trust PO Box 12929 Penrose Auckland New Zealand Phone: 64 9 525 3023 Fax: 64 9 525 7076 Table of Contents Preface 3 Executive summary 4 1.0 Introduction 6 2.0 Definitions and evidence of relationships 6 2.1 Work-life balance 6 2.1.1 Productivity 7 2.1.2 Relationship between work-life balance and productivity 8 2.2 Workplace/work-life culture 11 2.2.1 Relationship between work-life balance and workplace culture 12 2.3 Discretionary effort and employee engagement: going the extra mile 16 2.3.1 Relationship between discretionary effort/employee engagement and productivity/profitability 20 2.3.2 Relationship between work-life balance and discretionary effort 21 2.3.3 Relationship between workplace culture and discretionary effort 23 2.4 Summary of inter-relationships of key factors 24 3.0 Changing a workplace culture 26 3.1 Case studies of culture change 27 4.0 Conclusion 29 5.0 References 30 Preface Employee engagement has been identified as critical to competitive advantage in a labour market where skilled, committed...
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...Case Preparation Questions (Note that questions sometimes continue on the next page) Use a spreadsheet program such as Excel for computations for all cases Riley Supply 1. Prepare one indirect cash flow statement (operating-investing-financing) for 2004-2005 and a second one for 2005-2006. Do not aggregate any accounts. 2. Calculate common-size income statement for each year. 3. Calculate all financial ratios (use “A Basis Set of Financial Ratios”) for each year. You will always be expected to have all ratios and cash flows statements for all years of data. Coming to class without all if these completed means that you are unprepared for quizzes and class discussions. 4. Identify the major factors influencing Riley’s cash flow. Use the cash flow statements together with the ratios and common-size statements. 5. What is the length of Riley’s cash conversion cycle? Does it take a long time for Riley to go from spending cash to receiving cash? Why? 6. What are the implications of Riley’s cash flow for the financing needs of the firm? Westmoreland Inc. 1. Examine the beginning financial statements (2005) and the pro forma statements (2006 projected) for Westmoreland (Exhibit 1). Do complete ratio, common-size income statement and cash flow statement analyses with these data. The pro forma statements reflect management’s opinion about what will happen in the future. Incorporated into these statements is their business plan. 2. What...
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...Case Study 6-10 Facts: The Company has checking accounts in each of its locations: Baltimore, New York, and Philadelphia. There is a savings account in the Philadelphia branch with a balance of $100,000. The checking and saving accounts are all maintained through different banks. The Company’s New York office writes and mails a $30,000 check to Deep Pockets LLP. The Company’s bank reconciliation for the account indicated a negative $20,000 balance and the bank statement indicated a positive balance. The Baltimore branch wrote a check for $5,000 to Pawmenow.com on Dec. 23. The bank’s honoring of this check resulted in a negative balance in the Company’s bank account as of Dec. 31. The bank reconciliation for this Company indicated a negative $5,000 book balance after the check was recorded. Issues: Can the Company use the savings account to offset the negative balances in the checking accounts? Rules: 405-20-40-1 A debtor shall derecognize a liability if and only if it has been extinguished. A liability has been extinguished if either of the following conditions is met: a. The debtor pays the creditor and is relieved of its obligation for the liability. Paying the creditor includes the following: 1. Delivery of cash 2. Delivery of other financial assets 3. Delivery of goods or services 4. Reacquisition by the debtor of its outstanding debt securities whether the securities are cancelled or held as so-called treasury bonds. b. The debtor is legally...
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...empLOyee and LaBOr reLatiOnS STUDENT WORKBOOK Case Study Series on Work-Life Balance in Large Organizations By Gill Maxwell Project team Author: SHRM Project contributors: External contributor: Editor: Design: Gill Maxwell Bill Schaefer, SPHR Nancy A. Woolever, SPHR Sharon H. Leonard Courtney J. Cornelius, copy editor Scott Harris, senior graphic designer © 2008 Society for Human Resource Management. Gill Maxwell Note to Hr faculty and instructors: SHRM cases and modules are intended for use in HR classrooms at universities. Teaching notes are included with each. While our current intent is to make the materials available without charge, we reserve the right to impose charges should we deem it necessary to support the program. However, currently, these resources are available free of charge to all. Please duplicate only the number of copies needed, one for each student in the class. For more information, please contact: SHRM Academic Initiatives 1800 Duke Street, Alexandria, VA 22314, USA Phone: (800) 283-7476 Fax: (703) 535-6432 Web: www.shrm.org/hreducation 08-0753 Case Study Series on Work-Life Balance in Large Organizations By Gill maxwell Student Workbook employee and Labor relations Overview Introduction..........................................................................................................2 Format ..................................................................................................................3 Learning Objectives...
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...pillars to enlighten our way throughout this project that has led to successful and satisfactory completion of this study. We are really grateful to our HOD Mr. Rohit Dhand for providing us with an opportunity to undertake this project in this university and providing us with all the facilities. We are highly thankful to Miss Sukhdilpreet Kaur for her active support, valuable time and advice, whole-hearted guidance, sincere cooperation and pains-taking involvement during the study and in completing the assignment of preparing the said project within the time stipulated. Lastly, We are thankful to all those, particularly the various friends , who have been instrumental in creating proper, healthy and conductive environment and including new and fresh innovative ideas for us during the project, their help, it would have been extremely difficult for us to prepare the project in a time bound framework. Name AKSHI SHARMA Regd.No 10805416 Rollno. R246A05 TABLE OF CONTENTS 1. Introduction 2. Proposed system i. Description ii. System requirements 3. Requirement Analysis...
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...Server Vault: “Reliable, Secure, and Wicked Fast” Case: Server Vault: “Reliable, Secure, and Wicked Fast” University of Virginia – UVA F-1304 According to the information of Sever Vault’s case, in early 1999, Patrick Sweeney and Jim Zin started their own hosting company “Server Vault” with the two of them acting as the CEO and CFO of the company. Within the hosting industry, Server Vault served a segment of hosting customers who were Internet-reliant and security-savvy (Server Vault, UVA-F-1304, 2011). Moreover, the company always offered customers the ability to create their own basic- outlook website as well as a more complex-outlook page used for marketing. Inside the hosting market, Server Vault had specialized in the “secure and reliable” parts differentiating themselves from their competitor’s product. The firm had seven layers of security protection as a secure -building for their main desktop. They used their seven layers as the key to protect their data center (the vault) and all the information of their customers. To earn revenue, customers pay the setup-fee and monthly-fees. This revenue allowed Server Vault to maintain the servers and supporting servers as well as advertise their product on the Internet. When Sweeney and Zin started up Server Vault, they had already loaned money from their friends and small investors to run the company. However, for Server Vault to continue to grow at the rate that they would like, they will need to gain further investors...
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...1930s economists sought to apply price theory to explain the aggregate exports and imports and they viewed the exchange rate as the relative price of commodities traded internationally. However, because of the advent of the development of national accounts they started to treat the trade balance as a component of the national account, not only domestic account. They applied the Keynes’s writings to explain the balance of payment, which became an integral part of the theory that explains the dynamics of adjustments in the stock of money and overall trade balance. This approach uses IS-LM-BP framework to explain the changes that will occur in an economy as an effect of using monetary or fiscal policy, and how those changes will differ when the country operates under different capital mobilities and under floating or fixed exchange rates. One of the three components of this model, the IS curve, shows all of the possible combinations of income and the interest rates in the goods market. The LM curve relates to the interest rates and output on the money market. The BP curve is a line drawn on an IS-LM curve, which shows the different combinations of real income and interest rates at which the balance of payments is in equilibrium. The slope of the BP line indicates the degree of capital mobility in a country in a way that- the flatter the BP curve, the greater the capital mobility. The aim of this essay is to use this model in order to...
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...Candela Corporation Case P.1 Candela Corporation Case Tara Hall ACC / 230 November 6, 2011 Mark Bull Candela Corporation Case P.2 In 2002, the Candela Corporation had a cash flow from operation activities of $7,071,000 which is great than the net loss of $2,154,000. The net loss was due mostly to increases of accounts receivable and inventories, and a decrease in accounts payable. The purchase of new plant assets, repurchase of treasury stock, and cash used in operating activities went to the decrease in the balance in cash and cash equivalents. The net loss was calculated using the accruals method. In order to reach the real cash flows, the non-cash expenses had to be re-added. Of these, the most important additions were the loss from the discontinued operations and interest on stock warrants; the two most important subtractions were due to the deferred taxes and foreign currency exchange rate difference. The analysis of working capital showed that: * Receivables, inventory and tax payable increased by a significant amount. * Warranty costs, payables and other assets decreased, but by a lower margin. This shows that the working capital adjustments resulted in a gross outflow of cash which causes the cash outflow in the form of operating activities. In the investing activities, it is shows the only item and that is the purchase of fixed assets, which causes an outflow in terms of investing activities. In financing activities, the overall outflow...
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...BASE CASE ASSUMPTIONS MADE • In order to discount the free cash flow to firm (FCFF), the following formula was used: o = ∗ 1 − + − − ∆ • In order to find WACC, the following assumptions were also made for the CAPM: o Market Risk Premium = FTSE CAGR 2002-2007 - fixed risk-free (given) = 4.68% o Debt costs = Interest payment / long-term debt = 5.25% • Equity ratio = market cap / total value = 128m/182m • Debt ratio = Market value debt / total = Exhibit 2 figures (not Balance Sheet) • Net debt for all different scenarios was assumed to be the value from t=0 • NWC = Current assets07 – current liabilities07 – excess cash07 (Working Capital Turnover Ratio: 58% of sales)1 was kept constant • Terminal Value = 2020 − discounted from 2019 • Pos. NPV = GBP 188.43m • As shown on the next slide, the stock at its current pricing of GBP 13.8 is undervalued according to the DCF – it should be GBP 18.27 or GBP 17.29 depending on which net debt is used o Since the Net debt/EV ratio shown in Exh. 2 does not match the EV calculated from the balance sheet figures, both results are shown at the bottom 1 As calculated in Berk & DeMarzo. (2013). “Corporate Finance” EV appx. GBP 195m http://www.transfermarkt.de/tottenham-hotspur/startseite/verein/148, calculated with FX rate. Accessed 2016-04-02 2 Official 1 BASE CASE 188.43 Current Forecast 0 2007 Revenue 1 2008 2 2009 3 2010 4 2011 5 2012 6 2013 7 2014 ...
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